Econ_102_Test_3_-_Review_Summary_S09 - Econ 102(01 Review...

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Econ 102(01)  Review Summary for Test 3 – S09 1 Chapter 8:  Saving and Investment Financial Markets Stock Market o Equity Finance o Efficient Market Hypothesis o Rational Expectations The Market for Loanable Funds Demand for Loanable Funds (downward sloping) Supply of Loanable Funds (upward sloping) Government Policies that Increase Saving o Lower tax on interest income and dividends o Lower capital gains tax o Increase in the amount individuals can contribute to deferred RRSPs Government Policies that Increase Investment o Investment tax credit The Grim Consequences of Government Deficits o Crowding out effect  Ricardian Equivalence Chapter 9:  Unemployment and Its Natural Rate Natural Rate of Unemployment o Definition Types of Unemployment o Frictional  o Structural o Seasonal o Cyclical How Unemployment is Measured o Labour Force (LF) LF = E + U o Unemployment Rate (UR) UR = (U/LF)*100
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Econ 102(01) 
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Econ_102_Test_3_-_Review_Summary_S09 - Econ 102(01 Review...

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